SBA 7(a) Beauty Salon Feasibility Study in Nebraska

Nebraska beauty salon lending in SBA's records

In Nebraska, SBA 7(a) approved 59 loans in the beauty salon class. Across FY2017 to FY2026 in Nebraska that came to $9.4 million gross. Counting beauty salon loans, Nebraska ranks 33 across states for beauty salon under this program, and beauty salon sits 4 of 39 among Nebraska classes. A median of $113,700 is 1.31x of the national beauty salon median under SBA 7(a), so Nebraska runs above the norm. For beauty salon in Nebraska, the middle half spans $50,000 to $207,900, and franchise flags mark 13.6% of Nebraska beauty salon loans.

Who holds the beauty salon loans, and where

The largest named beauty salon holder in Nebraska is Midwest Bank: 5 loans worth $749,700. Holders in Nebraska are those SBA currently lists. The Nebraska beauty salon county count starts with Douglas at 27, Lancaster at 13, Sarpy at 5, Madison at 3, Buffalo at 2.

Timing of Nebraska approvals

The Nebraska beauty salon calendar shows 5 loans ($2.1 million) in FY2019, then in Nebraska 2 in FY2020 ($213,700), and in Nebraska 7 in FY2021 ($1.5 million), 8 in FY2023 ($819,200) and 1 in FY2024 ($400,000) against Nebraska's peak of 10 in FY2018.

Beauty salon cancel and charge-off floors

In Nebraska, approval did not always mean a beauty salon loan: of FY2017 to FY2024 Nebraska approvals, at least 14.3% ended in Nebraska cancellation, with 16.7% the ceiling if undisbursed beauty salon loans are added. The beauty salon cohort funded in Nebraska is too small, so Nebraska holds no stable charge-off rate for beauty salon loans in Nebraska funded FY2017 to FY2021; Nebraska withholds the rate, and Nebraska lenders should not read it as zero.

Nebraska: what a salon study has to test

The lender's question is whether another salon is the best use of a storefront or suite in Nebraska. A study should count competing salons across the trade area, much of it around the Omaha and Lincoln markets, test how many chairs the concept fills and how stylist turnover would hit revenue, and size the build-out or purchase against loans that often run near $113,700. Coverage should be shown under a slow first year. Where the real estate is part of the deal, valuation should draw on market rents for comparable space.

Nebraska salons and what the figures omit

Nothing in the coding blurs beauty salon loans, so Nebraska totals describe salons directly. What the page cannot supply is a charge-off history: that rate is withheld, and the study has to build its own downside case.